In Allowing Yuan to Devalue, China Policy Makers Concede Economy Needs a Boost – Wall Street Journal
China’s abrupt devaluation of the yuan this week is an acknowledgment from Beijing that its domestic economy needs help, a vulnerability that Chinese policy makers have played down during the escalating trade conflict with the US.
- China’s Yuan Could Weaken Past 7.5 if Trump Hikes Tariffs Further – CNBC
- China’s Forex Reserves Fall to $3.104 Trillion Amid Rising Trade Tensions – Reuters
- The Grey Area Between Currency Devaluation and Currency Manipulation – Yahoo Finance
China Drawing Up New Measures to Boost Trade Amid US Tariff War – Reuters
China is drawing up new measures aimed at stabilising foreign trade, the official China Securities Journalreported on Thursday, to offset the effects of a bitter trade war with the United States.
Yield Curve Sends Strongest Recession Warning Since 2007 – Financial Times
A widely watched bond market indicator sent its strongest recession warning in more than a decade on Wednesday, as the global growth outlook dimmed and questions swirled about the Federal Reserve’s commitment to cut interest rates in light of rising US-China trade tensions.
Are Customers Buying the “No FX Volatility” Hype? (Opinion) – Profit & Loss
The FX options data from the latest FX turnover surveys highlights a paradox – at a time when everyone is bemoaning the lack of volatility and opportunities in FX, trading in FX options has risen strongly.
Hong Kong’s Financial Secretary Paul Chan Mo-po noted that any attack on its currency could be dealt with adequately given its strong banking system and record currency reserves and at the same time warned that there was a real possibility the city could slip into recession.
Fed’s Evans Says Trade Headwinds Could Justify Additional Rate Cuts – Wall Street Journal
Chicago Fed president says the central bank would need to lower rates by at least another quarter-percentage point to lift inflation back to 2% target.
Gold Prices Top $1,500 as Haven Rally Accelerates – Financial Times
Gold prices surged through $1,500 a troy ounce for the first time in over six years, driven by demand for a safe haven asset amid growing concerns about a slowdown in the global economy.
Regulatory News
Tarbert Announces Additional Executive Leadership Appointments – CFTC
US Commodity Futures Trading Commission Chairman Heath Tarbert has announced further appointments to the CFTC’s executive leadership team.
Gain Capital Fined Over Customer Order Malfunction – Profit & Loss
The US National Futures Association has fined Gain Capital $50,000 for “failing to favourably adjust all customer orders adversely impacted by a recurring malfunction” in its e-platform.
Six Big Forex Market-Makers Call for End to Last Look – FX Week
The six largest non-bank liquidity providers in foreign exchange are publicly calling for the practice of last look to be eradicated and replaced with firm pricing.
Binary Options Boss Convicted of Role In $145M Fraud Scam – Law360
Israeli binary options executive Lee Elbaz was found guilty of wire fraud for the part she played in a $145 million investment scam that targeted overseas investors.
Crypto News
This paper attempts to find out if the view of the public coincides with the opinion of the experts on the Bitcoin’s subject and to determine if is information can be implemented in order to establish a use of Bitcoin in our everyday lives.
The Tax Man Taps the Brakes on Digital Currency Expansion – Forbes
The lack of central financial authority oversight means that digital currencies can be used to facilitate rampant tax evasion and, recently, the IRS and Tax Division of the Department of Justice pledged to focus on digital currency-related offenses.
Trading Technologies’ Crypto Platform Shutting Down – The Block
Trading software provider Trading Technologies has decided to pull the plug on its cryptocurrency trading platform, TT Crypto, as it couldn’t attract a sufficient amount of retail users.
Just 318 Crypto Addresses Control 80% of Tether – Bloomberg
The cryptocurrency world is even more concentrated than most observers probably realize.
Crypto Tax Bill Introduced in the US House of Representatives – Coin Telegraph
A tax bill seeking to allow the exclusion of gain or loss on like-kind exchanges of virtual currency has been introduced in the United States House of Representatives.
Company News
Primary FX Venues Suffer Steep Drops in July – Profit & Loss
Three primary trading venues in the FX market saw volumes decline sharply in July, to reinforce last week’s reported drops from other platforms.
BNY Mellon Hires Tenengauzer as Derrick Retires – Profit & Loss
BNY Mellon has appointed Daniel Tenengauzer as head of markets strategy and insights and leader of its Aerial View market commentary platform.
Europe’s Banks Warn About Prospects – Wall Street Journal
For Europe’s lenders, the hits keep on coming.
New York Fed Restructures Markets Division – Profit & Loss
As it seeks to appoint to senior roles in the division, the Federal Reserve Bank of New York has announced that it will restructure the leadership of its Markets Group to “best meet its critical responsibilities”.
Market Savvy
Sterling Rout Not Yet Over as No-Deal Brexit Odds Jump – Reuters
Sterling’s recent slide is not yet over as the chances Britain and the European Union part ways without a withdrawal deal have jumped again after arch-Brexiteer Boris Johnson took over as prime minister last month, a Reuters poll found.
Trump’s Trade Wars Make a No-Deal Brexit Increasingly Dangerous for the EU – Daily Telegraph
The economic stakes are rising very fast for the EU as Brexit D-Day nears.
China’s Power Struggle Lies Behind Global Market Turmoil – Asian Nikkei Review
Xi’s inability to convene long-delayed economic meeting is at the heart of uncertainty.
Japan and South Korea Will Be Biggest Losers in US-China Currency War – Asian Nikkei Review
ASEAN countries will also be collateral damage as demand falls and exports are hit.
Global Growth Fears Support Yen, Australia and NZ Dollars Pare Losses – Reuters
The yen was supported on Thursday, after global central banks startled markets with heavy rate cuts and threats of more to come as world economic risks grow, boosting the appeal of the safe-haven Japanese currency.